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The company to be discussed in regard to ethical practices in financial management as well as internal and external pressures is Wells Fargo. Wells Fargo has a strong corporate governance in place with a focused vision and values. The vision of Wells Fargo is t satisfy their customers needs and assist them in succeeding financially (Tayan, 2019). Considering this, Wells Fargo still found itself in a large spotlight surrounding cross-selling targets imposed onto the employees of Wells Fargo starting in 2013 (Tayan, 2019). This excessive pressure on the employees with financial incentives to meet those cross-selling targets was a large carrot in some cases up to 20% of the managers annual salary as a bonus. The issue is that accounts were opened without customer consent (Tayan, 2019).

Wells Fargo has language in employee manuals that has directional detail on splitting deposits for customers and opening multiple accounts to split those deposits and it details it as a direct integrity violation (Tayan, 2019). The company has legal protections in place that mitigate and minimize risk that is tied to compensation around bonuses that are tied to visions and values the issue Wells Fargo ran into was that there were no inclusions or protections for cross-sales bonuses for employees or management (Tayan, 2019). Due to a lack of controls in place, and monetary bonuses tied to cross-sales Wells Fargo found its company in a legal battle and lawsuit that settled for $185M and another settlement of $1 Billion, a CEO resignation, the Board of Directors being investigated, and disclosure of even further violations with auto loan insurance and mortgage violations (Tayan, 2019).

The largest issue was not a major financial impact to the customers, rather the impact was a large tarnish on the reputation of Wells Fargo as the perception to the customers was direct fraud. It is important that moving forward the company is watched and evaluated with a fine-toothed comb in regard to ethical practices and if monetary incentives are offered that they are not tied in relation to ethical practices. It is a fiduciary responsibility of all managing partners and executives to hold high regard to all ethical standards and requirements of the company as well as requirements of the government and if anything is found outside of those requirements to self-report and fix the areas that are broken. Additionally, ensuring that management, executives and team members actions are aligned with the companys values (Tayan, 2019).